We believe there is a decent chance we saw a couple of changes recently, at least in the near term.

As you know, we have been bearish on many areas of the globe. After months of us warning to avoid, many are now coming around to the fact these areas were in bear markets. We think there is now a chance a decent low is being put in. This does not mean they are starting a new bull market but we think at the very least, a rally has started. Of course, it can turn into more. Nothing is for sure but we noticed a successful retest in China as well as many other areas. Many China ADRs may be putting in near-term lows.

In spite of so many areas of weakness in the U.S. market, notice one thing…the major indices refuse to buckle. Pullbacks have been nominal. Also, the important SEMICONDUCTORS were getting slammed again yesterday only to reverse most of the losses…another good near-term sign. Any selling has been defended and suspect that leads to some upside. It is good news that all major indices held support. It is good news that the TRANSPORTS have moved to new highs. It is good news that growth areas remain strong. And yes, all this is happening in September.

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), a state registered investment adviser. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.